February 2, 2005

REVENUE MEMORANDUM CIRCULAR NO. 06-05

SUBJECT : Salient Features of Supreme Court Decision on Waiver of the Statute

of Limitations under the Tax Code

TO : All Internal Revenue Officers and Others Concerned

For the information and guidance of all internal revenue o cers, employees and
others concerned, the following are the salient features of the decision of the Supreme
Court in the case of Philippine Journalists, Inc. vs. Commissioner of Internal Revenue,
G.R. No. 162852, promulgated on December 16, 2004, to wit:
1. A waiver of the statute of limitations under the Tax Code must conform strictly
with the provisions of Revenue Memorandum Order No. 20-90 in order to
be valid and binding.
1.1. The waiver must specify a de nite agreed date between the BIR and
the taxpayer within which the former may assess and collect
revenue taxes. 2005cdtai

1.2. The waiver must be accepted by the Commissioner of Internal

Revenue or his duly authorized representative, and the date of
acceptance must be indicated.
1.3. The taxpayer must be furnished a copy of the waiver accepted by the
BIR.
2. A waiver of the statute of limitations under the Tax Code, to a certain extent, is
a derogation of the taxpayer's right to security against prolonged and
unscrupulous investigations and must therefore be carefully and strictly
construed.
3. A waiver of the statute of limitations is not a waiver of the right to invoke the
defense of prescription. It is an agreement between the taxpayer and the
BIR that the period to issue an assessment and collect the taxes due is
extended to a date certain. TEDHaA

4. A waiver of the statute of limitations is not a unilateral act by the taxpayer or

the BIR, but is a bilateral agreement between two parties.
All internal revenue o cers and others concerned are enjoined to give this
Circular as wide a publicity as possible.

(SGD.) GUILLERMO L. PARAYNO, JR.

Commissioner of Internal Revenue

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